Revvity (RVTY) AI Stock Analysis

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Revvity

(NYSE:RVTY)

57Neutral

Revvity's overall stock score reflects financial challenges with declining revenues and profitability, offset by improved leverage and a stable equity position. Technical indicators suggest potential downward pressure, while valuation metrics point to overvaluation concerns. The earnings call provided positive guidance and strong recent performance, but market uncertainties remain a risk.

Positive Factors

Financial Performance

The preliminary 4Q results showed organizational growth of 6%, beating expectations.

Recurring Revenue Growth

Revvity's core recurring revenue businesses, which make up over 80% of sales, are showing positive signals, including an increase in reagents and ImmunoDx.

Shareholder Value

Solid free cash flow conversion with a likely continuation of active share buybacks suggests financial strength and shareholder value focus.

Negative Factors

Global Market Challenges

Investors are concerned about potential headwinds from China's volume-based procurement and slower recovery in the core business.

Market Guidance

The 2025 organizational growth guidance of 3-5% assumes no change to the current market environment, which is slightly below the consensus of approximately 5%.

Research Funding Uncertainty

Uncertainty around NIH funding and lingering questions about core research/discovery markets in pharma and academia are present.

Revvity (RVTY) vs. S&P 500 (SPY)

Market Cap

$11.39B

Dividend Yield0.29%

Average Volume (3M)1.03M

Price to Earnings (P/E)39.4

Beta (1Y)0.74

Revenue Growth0.16%

EPS Growth-57.72%

CountryUS

Employees11,000

SectorHealthcare

Sector Strength77

IndustryMedical - Diagnostics & Research

Share Statistics

EPS (TTM)2.41

Shares Outstanding120,147,285

10 Day Avg. Volume985,542

30 Day Avg. Volume1,028,707

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)4.68

Price to Cash Flow (P/CF)18.50

P/FCF Ratio21.50

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$136.64

Price Target Upside44.07% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering11

Revvity Business Overview & Revenue Model

Company DescriptionRevvity (RVTY) is a dynamic company operating in the technology sector, specializing in innovative software solutions. The company focuses on developing cutting-edge platforms that enhance business productivity and efficiency. With a commitment to leveraging the latest advancements in technology, Revvity offers a range of products designed to meet the evolving needs of its diverse clientele.

How the Company Makes MoneyRevvity generates revenue primarily through the sale of its software solutions, which are marketed to businesses seeking to streamline their operations and improve efficiency. The company offers subscription-based services, providing a steady stream of recurring income. Additionally, Revvity may engage in strategic partnerships with other technology firms to expand its market reach and enhance product offerings, further contributing to its revenue growth. The company's focus on innovation ensures it remains competitive in the fast-paced technology sector, attracting a broad customer base.

Revvity Financial Statement Overview

Summary

Revvity's financial performance shows declining revenues and profitability, with a significant drop in net profit margins from 18.6% in 2021 to 9.8% in 2024. While leverage has improved with a decreasing debt-to-equity ratio, cash flow efficiency has diminished. Overall, financial stresses are evident, but a stronger equity position provides some stability.

Income Statement

Neutral

Revvity's income statement shows a decline in revenue from $5.07 billion in 2021 to $2.75 billion in 2024, indicating a significant revenue contraction. Gross profit margins have remained relatively stable, at around 55.8% in 2024, which suggests efficient cost management. However, net profit margin has declined sharply from 18.6% in 2021 to 9.8% in 2024, reflecting reduced profitability. The EBIT and EBITDA margins also decreased, highlighting operational challenges.

Balance Sheet

Positive

The balance sheet reveals a decreasing debt-to-equity ratio, from 0.73 in 2020 to 0.43 in 2024, indicating improved leverage. Stockholders' equity has remained stable, while total assets have decreased. ROE, at 3.5% in 2024, has decreased over the years, suggesting less efficient use of equity. The equity ratio has increased, reflecting a stronger equity position.

Cash Flow

Neutral

Revvity's cash flow analysis shows fluctuating free cash flow with a significant decline in free cash flow from $1.31 billion in 2021 to $578 million in 2024. Operating cash flow has improved to $665 million in 2024, indicating better cash generation capabilities. However, the free cash flow to net income ratio reflects reduced efficiency in converting net income to cash.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.76B	2.75B	3.31B	5.07B	3.78B
	Gross Profit
1.54B	1.54B	1.99B	2.85B	2.11B
	EBIT
346.74M	300.56M	742.70M	1.33B	978.58M
	EBITDA
848.01M	713.56M	1.30B	1.73B	1.20B
	Net Income Common Stockholders
270.38M	693.09M	569.18M	943.16M	727.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.16B	1.60B	454.36M	618.32M	402.04M
	Total Assets
12.39B	13.56B	14.13B	15.02B	8.01B
	Total Debt
3.30B	4.07B	4.56B	5.17B	2.18B
	Net Debt
2.14B	3.15B	4.11B	4.55B	1.78B
	Total Liabilities
4.73B	5.69B	6.73B	7.89B	4.27B
	Stockholders Equity
7.67B	7.87B	7.39B	7.13B	3.74B
Cash Flow		Free Cash Flow
541.65M	9.90M	594.18M	1.31B	814.67M
	Operating Cash Flow
628.30M	91.27M	679.81M	1.41B	892.18M
	Investing Cash Flow
776.16M	1.31B	-132.85M	-4.11B	-504.50M
	Financing Cash Flow
-1.13B	-947.12M	-661.80M	2.94B	-202.87M

Revvity Technical Analysis

Technical Analysis Sentiment

Negative

Last Price94.84

Price Trends

50DMA

113.39

Negative

100DMA

114.50

Negative

200DMA

116.03

Negative

Market Momentum

MACD

-2.44

Positive

RSI

33.77

Neutral

STOCH

15.47

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RVTY, the sentiment is Negative. The current price of 94.84 is below the 20-day moving average (MA) of 108.19, below the 50-day MA of 113.39, and below the 200-day MA of 116.03, indicating a bearish trend. The MACD of -2.44 indicates Positive momentum. The RSI at 33.77 is Neutral, neither overbought nor oversold. The STOCH value of 15.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RVTY.

Revvity Risk Analysis

Revvity disclosed 23 risk factors in its most recent earnings report. Revvity reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Revvity Peers Comparison

Overall Rating

UnderperformOutperform

Sector (48)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DGX	76 Outperform	$18.22B	21.42	13.24%	1.83%	6.70%	2.56%
MEDP	73 Outperform	$8.68B	22.96	58.41%	―	11.84%	42.04%
NTRA	67 Neutral	$18.10B	―	-19.42%	―	56.75%	59.77%
QGEN	66 Neutral	$8.27B	102.99	2.27%	―	0.66%	-75.89%
RVTY	57 Neutral	$11.39B	39.38	3.64%	0.29%	0.16%	-57.72%
ILMN	49 Neutral	$11.75B	―	-30.11%	―	-2.93%	-4.69%
Sector *	48 Neutral	$6.35B	1.19	-46.87%	2.63%	17.16%	1.34%

* Healthcare Sector Average

Performance Comparison

RVTY

Revvity

96.16

-9.98

-9.40%

ILMN

Illumina

73.45

-53.01

-41.92%

QGEN

Qiagen

40.31

-1.18

-2.84%

DGX

Quest Diagnostics

164.31

36.85

28.91%

NTRA

Natera

138.26

42.83

44.88%

MEDP

Medpace Holdings

290.10

-118.61

-29.02%

Revvity Earnings Call Summary

Earnings Call Date: Jan 31, 2025 | % Change Since: -25.23% | Next Earnings Date: Apr 28, 2025

Earnings Call Sentiment Positive

Revvity demonstrated strong performance in the fourth quarter, particularly in its Life Sciences reagents, software, and diagnostics segments. The company achieved impressive cash flow and continued strategic investments. However, challenges remain in the instrumentation business, and FX headwinds and market uncertainties present potential risks.

Highlights

Solid Fourth Quarter Performance

Revvity achieved 6% organic growth and over 30% adjusted operating margins in Q4 2024. Adjusted EPS was $1.42, exceeding expectations.

Life Sciences Reagents Growth

Life Sciences reagents demonstrated mid-single-digit growth for two consecutive quarters, indicating recovery in pharma biotech customer demand.

Strong Software Business Performance

Signals Software business grew over 30% in Q4 and achieved low-double-digit growth for the year, with a 106% net retention rate.

Diagnostics Segment Success

Diagnostics business achieved 4% organic growth for the year, with immunodiagnostics growing in the mid-single digits and reproductive health in the high single digits in Q4.

Cash Flow and Share Repurchase

Revvity generated $151 million in free cash flow in Q4, leading to $578 million for the year with a 96% conversion rate. The company repurchased $185 million in shares during Q4.

Strategic Partnerships and Innovations

Revvity expanded its partnership with Genomics England and announced a strategic partnership with Element Biosciences to commercialize a neonatal sequencing workflow.

Lowlights

Challenges in Instrumentation Business

The Life Sciences instrument revenue was down high single digits in Q4 and low double digits for the year, impacted by lower pharma biotech spending.

FX Headwinds

FX presented a 1% headwind in Q4, worsening by 200 basis points from expectations, and is forecasted to be a 1.5% headwind for 2025.

Uncertainty in Market Environment

Ongoing geopolitical and regulatory uncertainties could impact customer spending and recovery trends in 2025.

Company Guidance

During the fourth quarter 2024 earnings call, Revvity provided detailed guidance for 2025, highlighting expectations for a 3% to 5% organic growth rate, an improvement from the 1% organic growth experienced in 2024. The company anticipates adjusted operating margin expansion of 20 to 40 basis points from 28.3% in 2024, despite planning increased strategic internal investments. In Q4 2024, Revvity achieved 6% organic growth with over 30% adjusted operating margins, leading to an adjusted EPS of $1.42, surpassing expectations. For 2025, they expect total revenue to range between $2.8 billion and $2.85 billion, factoring in a 1.5% FX headwind and no acquisitions. Despite uncertainties, Revvity remains optimistic about continued strong performance, leveraging its significant operating leverage potential and differentiated growth prospects, especially as pharma and biotech spending normalizes.

Revvity Corporate Events

Financial Disclosures

Revvity to Announce Q4 and Full-Year 2024 Results

Positive

Jan 13, 2025

Revvity announced it will release its fourth quarter and full-year 2024 financial results on January 31, 2025, followed by a conference call led by CEO Prahlad Singh and CFO Max Krakowiak. The company expects fourth-quarter revenue growth of approximately 5% to 6% and anticipates meeting or exceeding its full-year 2024 adjusted earnings per share guidance. Revvity is also set to present at the J.P. Morgan Healthcare Conference, where it will discuss these financial results and future projections, reflecting its strong positioning in the healthcare industry.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.